Oil prices struggle on doubts OPEC can rein in oversupply

Faith Ward |Monday, June 19, 2017

Top producer Russian Federation, not an OPEC member but which signed up to the deal to cut output, is expected to export 61.2 million tonnes of oil via pipelines in the third quarter, equivalent to about 5 million bpd, against 60.5 million tonnes in the second quarter, according to industry sources and Reuters calculations.

"Our first outlook for 2018 makes sobering reading for those producers looking to restrain supply", the IEA said in its monthly oil market report. Prices dropped $US1.73 to $US44.73 on Wednesday, the lowest close since November 14.

Crude futures extended losses for a second straight day, as investors continued to fret about growing United States production after recent data showed an unexpected surge in gasoline inventories, pointing to a period of potential weak demand. Global energy demand grew by 1 percent in 2016, a rate similar to the previous two years but well below the 10-year average of 1.8 percent, BP said in its benchmark Statistical Review of World Energy on Tuesday. A rise in USA crude oil exports could have also contributed to the fall in inventories.

The U.S. West Texas Intermediate crude July contract was at $44.48 a barrel by 3:55AM ET (0755GMT), down 25 cents, or around 0.6%.

The price falls are due to ongoing high supplies despite the pledge to cut from within OPEC and because of rising output from the US. Crude output climbed while nationwide inventories fell less than predicted.

10 still in critical condition after London fireAnother large group of protesters stormed the town hall of Kensington and Chelsea, the borough in which Grenfell Tower is located. Several people appeared to clash with security guards inside, before leaving the building and gathering on the steps outside.

"Production growth in Libya and Nigeria and continued rig additions in the US are complicating the picture, raising doubts on OPEC's strategy", AB Bernstein said, reports CNBC.

Add in Russia's tanker shipments and its total exports are likely above 9 million bpd.

The U.S. Energy Information Administration (EIA) raised its prediction for U.S. output growth in 2017 to 460,000 bpd from a predicted decline of 80,000 bpd in December. "This looks challenging", AB Bernstein said.The International Energy Agency (IEA) said this week that oil supplies next year would still outpace demand despite consumption hitting 100 million bpd for the first time.

Libyan output will reach 900,000 barrels a day within days, National Oil Co. said on its website, citing Chairman Mustafa Sanalla.

Energy services company Baker Hughes said last Friday that US drillers last week added rigs for the 21st week in a row, the longest such streak on record.

Lions skipper Warburton returns to face Highlanders
Easy to say that after a convincing victory, of course, but McGeechan is a Lions legend and knows how these tours work. Hogg failed an head injury assessment and will miss the next match against the Highlanders .

Trump rolls back some, not all, changes in US-Cuba relations
The Cuban government has made clear it will not be pressured into reforms in exchange for further engagement with Washington . Trump, however, stopped short of breaking diplomatic relations restored in 2015 after more than five decades of hostilities.

Brexit negotiations to start on June 19
Earlier, German Finance Minister Wolfgang Schaeuble made very similar comments on the possibility of Britain staying in the EU. The Prime Minister triggered Article 50, the legal process for leaving the European Union , on 29 March.

Senate passes sweeping sanctions bill targeting Iran, Russia
Congress is keeping a wary eye on the two countries and that the legislative branch expects nothing less from President Trump . Secretary of State Rex Tillerson anxious about a potential amendment closing off channels to the country, but Tennessee Sen.

Document says Trump hotel brought in nearly $20M
But the president also substantially increased his royalty earnings from his book Art Of The Deal . Documents for those individual loans suggest Trump actually has a minimum of $500 million in debt.

US Open at a glance
I know I'm going to be nervous, but it'll be a good nervous. "I was just happy that I was the one to take advantage of it today". Thomas admitted that as he walked up the 18th fairway Saturday afternoon, he wasn't aware that he was on the verge of history.

Prosecutors rest their case at Bill Cosby's trial
Andrea Constand is accusing Cosby of drugging her and sexually abusing her as she drifted in and out of consciousness. Constand refused the offer and reported Cosby to police, suing him after prosecutors failed to file charges.

Van hits pedestrians in London
The Metropolitan Police called it "a major incident" and said that a number of casualties are being treated at the scene. Vanzella said she went to the window and saw "loads of people gathering" in a corner across the road from her window.

Ronaldo seeks Real Madrid exit after tax accusations
Spanish newspaper Marca reported last night that the club are trying to calm Ronaldo down and get him to reconsider his position. Real Madrid said on Thursday that they were confident the Portuguese forward had acted legally.